Tds on import of software fro usa
This query is : Resolved
CA SHANU AGARWAL
(Querist)
19 April 2015
whether is it necessary to deduct tax at source on import of software from usa.
if yes then what is the rate to deduct tax
if yes then what is the rate to deduct tax
CA Subham Verma
(Expert)
20 April 2015
It is necessary to deduct tax at source on import of software from USA u/s 195 of IT Act 1961
Rate of Tax:
Relevant rate in force as per chapter XVIIB. Incase payee not having valid PAN, then TDS rate as per rate prescribed chapter XVIIB or 20% whichever is higher will apply. While calculating TDS rates we need to consider the provisions under Double Taxation Avoidance Agreement (DTAA) for the relevant country if any. In case payee fulfilling all the conditions as prescribed in the DTAA then rates as per DTAA will apply. Generally rates under DTAA will be lower than normal TDS rates.
Normal Rate 10%+Cess u/s 194J for the same case.
Rate of Tax:
Relevant rate in force as per chapter XVIIB. Incase payee not having valid PAN, then TDS rate as per rate prescribed chapter XVIIB or 20% whichever is higher will apply. While calculating TDS rates we need to consider the provisions under Double Taxation Avoidance Agreement (DTAA) for the relevant country if any. In case payee fulfilling all the conditions as prescribed in the DTAA then rates as per DTAA will apply. Generally rates under DTAA will be lower than normal TDS rates.
Normal Rate 10%+Cess u/s 194J for the same case.
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